Innovation as the differentiator

Indian IT industry started off as a place with lower cost in 1980’s. In 2000 focus moved towards increased quality – in terms of CMMI certifications and increased focus on processes. Are these enough to sustain the Indian IT industry? Leading analysts say, No.

Why? The cost advantage is getting eroded due to emergence of other low cost centers such as China, Mexico, Thailand, Philippines and eastern Europe. Quality advantage is also taking a strong beating due to high amount of attrition still prevalent in India. (Only few companies are able to keep down the attrition to lower numbers).

With the above in mind, the next crucial differentiation India can offer is Innovation.

innovation does not mean we invent rocket every day. Innovation can be as small as incremental improvements in existing technology – something that can add value to the companies products or services.

Last 20 years of recruitment in India was following a fixed pattern of testing in some logics and programming skills and recruiting. That needs to change. Also, there is a blind belief that engineers from IITs are only capable of innovating – while on the contrary our experience shows that it is not true and in most cases it is otherwise. Real talent lies vastly outside in all colleges and universities and it is a question of having proper recruitment system that tests true talent instead of following blind believes.

Also the working environment should offer some scope for innovation. Like, allocating atleast 10% of bandwidth every month towards research and innovation.

Hope Indian IT industry wakes up to the truth and make right decisions at right time.


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